Think Outside the Box – The Benefits of Hiring Externally


There are plenty of reasons why companies hire from within. It’s cheaper, offers natural progression for candidates, and shows that as a company, you nurture and develop the people who are already doing a great job – but is this always the right choice for success?

Not always. It’s vital to assess the company’s specific needs and goals when hiring, but if you are looking for a strong leader, new ideas, the right experience, or a fresh set of eyes on things, hiring outside your company could be the right direction. While managing change in business can be difficult, there are actually lots of benefits to external hires, especially when it comes to leadership positions.

Let’s go over the top reasons you should consider hiring from the outside.

Keep It Fresh

Research by The University of Missouri states that hiring outside CEO’s can rejuvenate struggling businesses. New hires mean new ideas and a fresh perspective. Even if you aren’t looking for a new CEO — a temporary or consultative relationship is a great way to test out the waters in having ‘outsiders’ offer their skills towards your business. You’d be surprised how someone with no strings attached to the business can rev it up with their energy and expertise.

Top Performer  ≠ Top Leader

Warning! Your best performer isn’t always equipped to manage and lead others. Think twice before promoting your top performer into a top leadership position. Make sure the individual wants to be in a leadership position and make sure they have the leadership skills necessary for the role. If you don’t feel like you have anyone inside that’s up to it, hire from the outside. The right outside hire can set the tone in the office and actually help the employees you already have. They could end up being an awesome mentor and lead the whole company to success, helping those top performers in the long run.

Too Close for Comfort

Working with the same people all the time can lead to a business becoming stagnant. Although they can be dedicated workers, internal hires can sometimes be too close to see the bigger picture. They may have an attachment to the way things are currently running and they may be too invested to be able to see potential in new areas. External hires have the unique ability to see the bigger picture and recognize what can be improved. It’s easier for them to quickly assess the business and set it straight.

Shake it Up

Hiring outside leadership is great if your company is trying to go in a different direction culturally or wants to shake things up. Changing leadership is a great way to change to solidify this shift. It also shows your serious about the change. Communicate with your current employees why you’ve chosen to hire outside and highlight what the new hire is going to be able to do for everyone. Within the company, everyone should be on the same team.

Hiring externally can be a major asset to your business. It’s a strategy that should not be overlooked. However, if you still feel hesitant and worried that your internal team will feel threatened, here are a few things you could do—

  • Post new role internally first.
  • Clearly communicate with current employees why they did not get the role.
  • Create a plan to help candidates from within become fully prepared and qualified to move up.

Overall hiring externally is just a bit of friendly competition! Opening up positions to the outside might even make internal applicants work harder and show they really want it. In the grand scheme of things, the most important question to answer is who’s going to make your business better?

See Also:

Talent Acquisition: Management Trends in Strategic Staffing and Recruitment

CEO Insight: How Do You Know When It’s Time to Outsource?

Fractional COO’s and Why You Need One

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